Walmart shares opened higher Thursday after the US retailer posted stellar third quarter results earlier in the US morning.
Walmart’s eCommerce sales grew a huge 50% in the third quarter, mainly through the Walmart.com website, the company earnings press release stated.
That figure wasn’t the only positive number that helped lift shares some 6.8% in the first 15 minutes of trading, to hit $95.85.
Walmart gives customers what they want
As well as impressing on the online shopping level, Walmart’s bricks and mortar business was upbeat too. Revenues, sales and footfall where all stronger in the three months to the end of October 2017.
"We are pleased with the strong results in the quarter across each of our business segments,” said Walmart CEO, Doug McMillon.
“We have momentum, and it's encouraging to see customers responding to our store and eCommerce initiatives. We are leveraging our unique assets to save customers time and money and serve them in ways that are easy, fast, friendly and fun," McMillon added in the earnings press release.
The positive online sales performance has seen a number of headlines include a warning for Amazon.
Meanwhile, prices at Amazon’s own grocer, Whole Foods, have been slashed for a second time since the global retailer added it to its stable of stores.
Walmart’s unusual holiday plans
While Walmart’s results showcase what it can do when it offers the right deals to its customers, a separate report in the Wall Street Journal, suggests the retailer is taking a different approach for the holiday season.
Walmart is reportedly advertising higher prices for goods on its website, but offering discounts on those items in store. This strategy is designed to help increase footfall in its bricks and mortar stores.
It can work well, as many shoppers end up making more purchases than they planned when faced with the actual physical item. It’s success as a strategy has proven positive for other US retailers, which is likely one reason Walmart is employing it this year.